Citadel Settles Suit Over Bonds
February 13, 2008 at 5:38 AM (PT)
CITADEL BROADCASTING tells the SEC in a form 8-k filing that it has settled a lawsuit filed against it by shareholder WILMINGTON TRUST CO. over the indenture governing CITADEL's 1.875% convertible subordinated notes due 2011.
The shareholder sued claiming that CITADEL's merger with ABC RADIO had created a default on the notes. The settlement, which triggers a tender offer by CITADEL to buy back up to $55 million of the notes at $900 per $1,000 principal amount of notes and convert any bonds over $55 million to new Amended and Restated notes at 4%, pends approval by DISNEY.